Berhanu’s Law Firm

An estate plan is a comprehensive set of various legal documents and strategies designed for managing and distributing your assets both during your life and after. A will is a specific document within that plan that outlines exactly how your assets will be distributed after your death.

While a will is essential, a trust offers distinct advantages. A trust provides greater control over how your assets are distributed, allows your estate to avoid the time and expense of probate, and can offer enhanced privacy. Additionally, trusts often provide potential tax benefits that a standalone will cannot.

The gift tax exemption allows you to transfer wealth without immediate tax consequences. For 2024, you can give up to $17,000 per recipient annually without incurring any gift tax. This is a powerful tool for reducing the size of your taxable estate over time.

The GSTT is a federal tax on transfers of property to grandchildren or younger generations (essentially skipping a generation). This tax is designed to prevent the avoidance of estate taxes that would typically occur if the assets were passed down through each successive generation.